Sonic (Fantom) Price Prediction

The price of FTM today is $0.1, changing within the past 24 hours for -4.68% and 41.94% over the week. FTM’s price action is characterized by the Bearish sentiment.

The current volatility index for FTM is measured at 11.57%. FTM’s circulating supply is 2.8B. In the big picture, the highest price FTM has reached is $3.4701 and its lowest observed price was $0.0018.

What are Fantom (FTM) and Sonic (S)?

The Fantom network is a decentralized, high-performance blockchain platform that aims to provide fast and secure smart contract execution. Its design addresses the scalability limitations of blockchain networks from the first generation, such as Ethereum.

FTM is the native cryptocurrency of the Fantom network. It serves as a network’s medium of exchange for various purposes, including transaction fees, staking, and governance. FTM operates on a Proof-of-Stake (PoS) consensus mechanism, where token holders can participate in the network’s consensus and earn rewards for validating transactions.

The Fantom network leverages a unique technology called Lachesis, which enables it to achieve high throughput and low confirmation times. Lachesis is an aBFT consensus protocol that allows the network to process thousands of transactions per second, making it suitable for applications that require fast and scalable solutions.

One of the cornerstone features of Fantom is its smart contract support. Developers can build decentralized applications (dApps) on the network using Solidity, the same programming language used for Ethereum smart contracts. This compatibility makes it easier for developers to migrate their existing projects to Fantom.

What is Sonic and S?

In late 2023, the Fantom Foundation unveiled Fantom Sonic, a new technology stack that drastically improves the network’s capabilities. As a technology stack, it could eventually find its way to the mainnet but the developers decided to make Sonic a standalone blockchain.

Finally, in August 2024, a complete rebranding of Fantom became public. Fantom Foundation takes up the Sonic Labs mantle and organizes migration to the Sonic blockchain. In addition to incentivizing builders to migrate their dApps from Fantom Opera to Sonic, they will set up a bridge to convert FTM to S 1:1.

The current Fantom chain will continue working, although Sonic Labs will focus on the new one. This means that FTM and S will coexist, although the ecosystems are most likely going to take very different shapes over time.

Regardless of the name, the project aims to provide a scalable and efficient blockchain platform for decentralized applications, enabling developers to build and deploy their projects easily. If you still need to know more about it, check out our guide to Fantom (FTM).

What Affects the Fantom (FTM) Price?

Fantom vs Sonic

The elephant in the room that most definitely will have a major influence on the future price of Fantom and determine the value of Sonic (S) is the rebranding and migration. No one can know for sure how it would play out but similar cases were observed in the crypto space.

For instance, the introduction of drastic changes to a blockchain while keeping the old version happen in hard forks. In Bitcoin, well-known examples are Bitcoin Cash and Bitcoin SV. In both cases, a minority split off so the original chain remains the most active and valuable.

It does not mean that the original chain always comes out on top: Ethereum (ETH), which is second only to Bitcoin, is actually a fork of Ethereum Classic (ETC). However, in this case, the majority and the Ethereum Foundation chose to support the forked version.

The Sonic migration is not the same as a hard fork because there is not going to be any shared history of transactions and balances. Instead of just receiving the same amount of coins on the new chain, Fantom users will have to convert their FTM, implicitly transferring the value in the process.

Another case that can show how things might play out is Terra’s revival plan. After Terra’s algorithmic stablecoin caused the platform to collapse, its Foundation and the community decided to take the blockchain platform separate ways, becoming Terra 2.0 and Terra Classic respectively.

In terms of value, the community’s fork Terra Classic (LUNC) retained more than the original, despite the latter having backing from the original team. A possible reason was their damaged reputation, and nothing of the sort has happened to Sonic Labs, so the cases are not entirely comparable.

Updated Tokenomics

Another factor that can shed some light on the future of both S and FTM is the tokenomics. In that regard, Sonic will take after Fantom for the most part.

The initial supply of S will correspond to Fantom’s total supply of 3,175,000,000 FTM. However, both networks do not have a cap on the maximum supply, meaning that it will gradually dilute due to inflation unless the network value growth outpaces it. In Sonic, it can kick in as soon as six months after the launch, when the pre-approved airdrops and funding programs start.

To offset the impact of new mints, Sonic Labs pledges to burn the tokens that were not used for funding. The supply increase will also not affect Fantom: the migration bridge will let holders convert FTM to S and back only for the first six months before inflation kicks in.

Market Sentiment

The overall sentiment on the crypto market is another factor that certainly influences the price of FTM. Even though we have seen it go against the tide, generally it is more likely to be in profit when other cryptocurrencies are also seeing gains. And vice versa, when the majority of the market loses value, FTM is likelier to end up losing as well.

FTM Sentiment

Which way the market swings today? Overall, technical indicators show that currently, the sentiment in the FTM markets is Bearish. The Fear and Greed Index for FTM today is in the 42 (Fear) zone.